If expats’ remittances are any indication, UAE’s economy is surging forward
Expat remittances in the UAE jumped 17.4% yoy in Q1, 2018, led by Indians in terms of the value, according to Mubasher, quoting the UAE Central Bank.
Remittances reached $11.84 billion in Q1 2018, led by Indians transferring $10 bn, according to a central bank report.
“Meanwhile, Pakistanis and Filipinos came in second and third with total remittances of $2.4 billion and $1.88 billion, respectively,” said Mubasher.
A better year?
Remittances were up $1.76bn compared to $1bn in the same period last year, with 71% of transactions performed via exchange houses and the rest through financial institutions, according to the Central Bank.
“The overall increase came despite a decrease in the exchange rate of the UAE dirham by 7 per cent from January until March compared to the same period last year,” UAE dailies reported.
2017 total remittances rose 2.2% on 2016 $44.7bn, according to national news agency WAM, quoting the UAE Central Bank.
UAE’s non-oil growth
UAE non-oil economic growth slows slightly, said Reuters quoting the UAE Central Bank.
“Non-oil economic activity in the United Arab Emirates grew by 3.1% from a year earlier in Q1 2018, slowing slightly from 3.4% in Q1 2017,” Reuters said the central bank estimated on Tuesday.
Overall economic activity, which includes oil output, grew by 1.2% in Q1, same as last year.
“The central bank raised its forecast for gross domestic product (GDP) growth in 2018 to 2.7% from its previous forecast of 2.5%,” said Reuters.
Citing better prospects for the global economy, the bank lifted its prediction for the UAE’s non-oil GDP growth to 3.9% from 3.6% in 2018, while for next year the central bank expects overall GDP to expand 3.1% on the back of 4.3% growth in the non-oil economy.”
Reuters added that the UAE’s residential real estate market continued to decline in Q1 2018, with prices dropping 4.2% yoy in Dubai and 7.8% yoy in Abu Dhabi, quoting the central bank.